OT: Is owning property for deduction purposes what its cracked up to be?

[docmercer--banned]

Hoffa: way to goooo .... I post the truth and I fall in the same boat as you and the RW Dumbasses jump my ass for telling the truth



<table id="post2824120" class="tborder" align="center" border="0" cellpadding="6" cellspacing="0" width="100%"><tbody><tr><td class="thead" style="font-weight: normal;">04-29-2006, 07:48 AM <!-- / status icon and date --> </td> <td class="thead" style="font-weight: normal;" align="right"> #6 </td> </tr> <tr valign="top"> <td class="alt2" width="175"> Jimmy Hoffa <script type="text/javascript"> vbmenu_register("postmenu_2824120", true); </script>
RX Senior



Join Date: Mar 2005
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<hr style="color: rgb(253, 222, 130);" size="1"> <!-- / icon and title --> <!-- message --> Betwen owning a home and the kids I haven't owed income taxes for years. And yes, the mortage intrest and property tax deductions make a sizeable difference when you complete your taxes.

As far as investment purposes, God stopped making land a long time ago. The values don't go down, only up.
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[Dawoofdaddy]

What amazes me is that if somebody buys a house with a $200,000 price tag and then pays a 15 or 30 year mortgage, when asked "how much did you pay for this house" they quote $200,000. When in fact they probably paid $500,000 and much higher.

When has anybody said what they actually paid for their house?

I bought a small home several years ago (which is plenty for any single person), paid the entire mortgage in a couple years, and have since plowed my extra cash into certain stocks, which have risen much more than any house would have during the given time period.

When I hear people using the home ownership vs. renting is a "no-brainer" analysis...what I conclude is that person has little or no brains.

BB, if you are looking for tax benefits, certain types of investment properties are more suitable than a private residence. Buy a small duplex or triplex and get both living quarters and certain investment deductions.

A qualified tax advisor would know the updated information.

:money8:

 

[Fishhead]

What amazes me is that if somebody buys a house with a $200,000 price tag and then pays a 15 or 30 year mortgage, when asked "how much did you pay for this house" they quote $200,000. When in fact they probably paid $500,000 and much higher.

When has anybody said what they actually paid for their house?

I bought a small home several years ago (which is plenty for any single person), paid the entire mortgage in a couple years, and have since plowed my extra cash into certain stocks, which have risen much more than any house would have during the given time period.

When I hear people using the home ownership vs. renting is a "no-brainer" analysis...what I conclude is that person has little or no brains.

BB, if you are looking for tax benefits, certain types of investment properties are more suitable than a private residence. Buy a small duplex or triplex and get both living quarters and certain investment deductions.

A qualified tax advisor would know the updated information.

:money8:

There ya go folks, straight from one of the wisest financial advisors on TheRX.

:thumbsup2:

Agree 110%!

 

[quantumleap]

What amazes me is that if somebody buys a house with a $200,000 price tag and then pays a 15 or 30 year mortgage, when asked "how much did you pay for this house" they quote $200,000. When in fact they probably paid $500,000 and much higher.

When has anybody said what they actually paid for their house?

I bought a small home several years ago (which is plenty for any single person), paid the entire mortgage in a couple years, and have since plowed my extra cash into certain stocks, which have risen much more than any house would have during the given time period.

When I hear people using the home ownership vs. renting is a "no-brainer" analysis...what I conclude is that person has little or no brains.

BB, if you are looking for tax benefits, certain types of investment properties are more suitable than a private residence. Buy a small duplex or triplex and get both living quarters and certain investment deductions.

A qualified tax advisor would know the updated information.

:money8:

Woof:

I agree. When people have enough money to buy a home with cash, instead of paying off the home they use that money to invest it in other ways. What this tells me is that there are more profitable ways of investing your money than putting it into a house payment. That's not to say a house payment isn't profitable. It's just saying there are other ways more profitable.

 

[heart222]

Owning compared to renting is really a no brainer. Besides the financial side of increasing equity,tax breaks stable cost structure their is something called pride of ownership. Its adding something to your home for your enjoyment. If your renting can you really put a plasma tv over the fireplace for your enjoyment I dont thinkso. Oh and how much will rent go up every couple of years.
In the big picture long term ownership far outstrips renting.
I have a young son who wil due to some illnesses never be a large income person. Ten years ago at age 26 he bought a 1 bedroom condo in suburban washington for $75k. today it is worth $150k. For him more importantly his monthly payment with condo fee is around $600 a month. He could not rent for that in our area today. SO he has gained some equity has maintained stable monthy payments and in hiswords he is an owner.
Understand that I have been a stock broker with a major firm for 27 years and its a differant kind of investing then the market.
Unless you live in a town dependant on one manufacturing company or something like that where if they go the town goes as someone said they cant manufacture land and your value should increase.
It is sometimes hard to look over the valley for 10-15 years but if you can it is clear that home ownership is better than renting.
Just some thought from an old guy (67) who has been around the financial areanas for a long time. Best to all. heart 222

 

[WVU]

my house's value went from 220k in 2001 to 540k now in 2006. If you can do better than that with your money then you have skills. I only owe about 40k.

 

[bigbet1234]

Actually, I can:thumbsup2:

my house's value went from 220k in 2001 to 540k now in 2006. If you can do better than that with your money then you have skills. I only owe about 40k.

 

[WVU]

you can do better than 150% gain in 4.5 years? Do tell

 

[Kruser6]

As far as investment purposes, God stopped making land a long time ago. The values don't go down, only up.

 

[Kiss1]

One of the biggest misconceptions in the financial world is that OWNING is better than RENTING.

Translation = It's hard out here for a pimp.

:monsters-

 

[Anti-liberal]

People than own their own home have an average net worth that is 43 times those who rent. The wealthiest people in the world have either made their money in real estate or store their wealth in real estate. Renting is best only when you're moving around constantly, I believe. But you have to buy right...the money is made when you buy, not when you sell.

Real estate is one of the best and easiest ways to build wealth because of the leverage that you get by taking out a long term mortgage, as well as the tax breaks and appreciation that usually comes with it.